… as net profit increases to GH₵2.9M
By Ernest Bako WUBONTO
The Community Bank has announced impressive financial results for the end of 2024, despite economic difficulties, with a 29 percent rise in overall income.
The bank's income increased from GH₵13.24 million in 2023 to GH₵17.07 million in 2024, which included a GH₵150,000 recovery of frozen funds.
Furthermore, it showed a notable rise in profit compared to the previous year. Net profit went up from GH₵1.2 million in 2023 to GH₵2.9 million, indicating a 127 percent increase. Shareholders' equity also saw a substantial growth of 51 percent, moving from GH₵5.4m in 2023 to GH₵8.1m, primarily as a result of the profits earned during the year.
At the 37th Annual General Meeting (AGM) of the bank, Board Chair Seth Nii Sodjah Quao stated that this expansion was fueled by robust results in investment earnings and interest from loans and advances, along with a nine percent rise in fees and commission income, moving from GH₵1.4 million to GH₵1.6 million.
"Our recovery plan is producing outcomes, yet we continue to concentrate on long-term stability and growth centered around customers," he stated.
He mentioned that even with economic challenges, such as GH¢17 million in frozen funds from the 2018 financial sector cleanup and GH¢35 million in write-offs from the Domestic Debt Exchange Programme (DDEP), total deposits and assets increased by 21 percent and 30 percent, respectively.
Mr. Quao notified the shareholders that the Board of Directors is suggesting a dividend of GH₵759,777, which equals GH₵0.04 per share, subject to approval by the Bank of Ghana (BoG).
"It is pleasing that we have returned the Bank to an era of distributing dividends. Nevertheless, our continuous emphasis on fulfilling customer requirements will be crucial in attaining our objectives for the Bank's sustained success, benefiting all our shareholders," he assured.
The chair of the board mentioned that in alignment with its dedication to community growth, the bank has also set aside GH₵100,000 for both the La Town Development Fund and the La Education Fund.
A shareholder, Samuel Dadzie, highlighted the increase in the bank's total assets, which surpassed GH₵110,436,263, as a major achievement worthy of praise.
He encouraged the board to maintain the upward trend of the balance sheets while increasing the bank's assets.
Additionally, he expressed concern over the bank's loan portfolio, noting that only 20 clients account for roughly 43 percent of the bank's loans, a scenario he deemed excessively risky and in need of reorganization.
The chair of the board acknowledged that the matter of 20 clients with significant debt has been brought to attention by the regulatory body, so management is aware of the need to handle it.
Corporate Social Responsibility (CSR)
The bank's yearly report emphasized that La Community Bank strengthened its commitment to social influence by providing e-learning resources to Nii Amaa Ollennu Memorial School.
In the healthcare sector, the bank collaborated with the Planned Parenthood Association of Ghana (PPAG) to provide free breast cancer screenings in La.
Outlook for 2025
The board stated that although global economic conditions continue to be unstable, management remains confident in Ghana's external sector's stability, backed by exports of gold and cocoa along with inflows from remittances.
The Board highlighted organizational alignment, employee welfare, and an inclusive culture as essential factors for long-term growth.
"Solid groundwork has been established since we initiated our turnaround plan, and I am confident that we have concentrated on the appropriate priorities as we keep working on rebuilding and enhancing the bank," he concluded.
The Bank's Chief Executive Officer, Peter Vanderpuije, stated that the first half of 2025 has been promising, with all performance metrics reflecting favorable changes. Nevertheless, recent governmental regulations have necessitated a change in approach. As a result, the Management believes it is essential to restructure its loan selling strategy, expand its customer base, and launch new offerings tailored to different segments of the market.
"In the latter part of 2025, careful fund management, restructuring our microfinance operations, and aiding startups continue to be a reliable strategy to maintain our business," he stated.
Provided by SyndiGate Media Inc.Syndigate.info).